New York prosecutors, DoJ and FinCEN are investigating anti-money laundering policy of Capital One

27 February 2017

Last week eighth largest bank holding company in the US, Capital One Financial reported to the Securities and Exchange Commission that the investigation was launched into the company’s anti-money laundering policies. In its filing the company explained that it is scrutinized by the New York District Attorney’s Office, the Justice Department and the Financial Crimes Enforcement Network of the Treasury Department.

Reports in the media unveil that the investigators are looking for some former ‘check casher clients’ that constituted a part of the company’s commercial banking along with the anti-money laundering practices. Last November Capital One notified SEC in another filing that the card issuer received subpoenas and orders for information provision but no formal investigation was underway at the time. Last week the situation changed, yet spokesperson for Capital One notes that the case is the same, it is just the words changed that describe it.

Media sources report that for under two years Capital One has an open consent order with the Office of the Comptroller of the Currency in view of the gaps in the anti-money laundering practices of the card issuer in terms of its regulatory force.

In early January Capital One entered into a definitive agreement with Cabela’s Incorporate to acquired its credit card operations. In light of the situation with the Office of the Comptroller of the Currency, Capital One may suffer the loss of the deal in favor of its rivals, say reports in the media sources.